Question Details

Detailed explanation and options for the selected question.

If fixed costs are Rs. 100,000 and the variable cost per unit is Rs. 50, what is the break-even quantity if the selling price is Rs. 80 per unit?

A. 3333

B. 3334

C. 3500

D. 3000

Explanation:

Break-even = Fixed/(Selling price – Variable cost) = 100000/30 ≈ 3334 units.